Bank of India has declared Reliance Communications’ (RCom) loan account as fraudulent, naming former director Anil Ambani in a case of alleged fund diversion dating back to 2016. This follows a similar move by SBI earlier this year. In a regulatory filing dated August 8 and disclosed on August 23, the bank stated that loan accounts of RCom, Anil Ambani, and former director Manjari Kacker have been marked as fraudulent. A Rs 700 crore loan granted in 2016 was allegedly misused, with half the amount diverted into a fixed deposit, violating the sanction terms. The loan turned non-performing in 2017 with dues of ₹724.78 crore.
RCom’s unit, Reliance Telecom Ltd, also received a fraud notice involving former director Grace Thomas. Following SBI’s earlier complaint, the CBI conducted searches at RCom-linked sites and Ambani’s residence. Ambani, denying the allegations, emphasized he was only a non-executive director and had no operational role. He claims Bank of India denied him due process, ignoring Supreme Court and RBI guidelines. Despite 14 lenders involved, action appears staggered and selectively targeted at him. RCom, with over ₹40,000 crore in debt, is currently under insolvency proceedings overseen by a creditor committee and a resolution professional.
